On October 31, 2016, the Supreme Court of Georgia issued an opinion that is lengthy against payday loan providers in 2 instances consolidated on appeal. The 2 cases (Western Sky Financial, LLC v. State of Georgia, No. S16A1011 and State of Georgia v. Western Sky Financial, LLC, No. S16X1012) included state legislation of tribal affiliated, out-of-state payday lenders who offered loans to Georgia residents telephonically and on the internet. On appeal, the Supreme Court of Georgia considered a true quantity of issues including if the state could sue loan providers involved with interstate business underneath the stateвЂ™s Payday Lending Act (OCGA В§В§ 16-17-1 through 16-17-10); whether agreements created in another state had been at the mercy of that law; and whether tribal sovereignty precluded the lawвЂ™s enforcement.
The defendantsвЂ™ very first argument against GeorgiaвЂ™s attempted legislation ended up being that the Payday Lending Act excluded loans made through interstate business. Western Sky Fin. LLC v. State of Georgia, вЂ”S.E.2d вЂ”, 2016 WL 6407256, at *2 (Ga. Oct. 31, 2016). Even though the Court consented that a subpart for the statute expressly claimed that вЂњPayday financing involves loans that are relatively small will not encompass loans that include interstate commerceвЂќ (id. (quoting OCGA В§ 16-17-1(d)), it determined that this subpart had been simply a choosing of reality and never a limitation regarding the reach associated with the legislation. Id. It determined that if this subpart was a limitation, compared to the Payday Lending Act would вЂњbe virtually meaninglessвЂќ because basically all loans include interstate commerce. Continue reading